there are many things in this world that can be done for free, but only a fool would do so. I'm new here, and I can already tell you what a nightmare dealing with random people online is. You think its so easy to set this up, keep it running smoothly with no headaches? no way.
It doesn't matter if doing this doesnt cost him any physical money, it costs him time and headaches to keep things organized and fair. If paying him 5 bucks keeps the tournament fair and honest and allows it to grow in the future then it seems well worth it to me. Making money gives him incentive to do things right and not just trash the whole thing when times get difficult.
Doing it for the "community" freely is the dumbest bs anyone could ever say. 90% of every video game community doesnt deserve jack shit cuz they dont do anything to help anyone but themselves. People who try to help out the entire group always get bitten in the ass, at least the money can lessen the bite lol